A WA parliamentary question on notice regarding the financial impact of workers' compensation legislation changes following the Dutch and Dossett decisions, potential impacts on common law claims, and the effect of increased statutory benefits on long-term injured workers.

AnsweredQoN 654Legislative Council
Asked
25 August 2004
Portfolio
Consumer and Employment Protection

QuestionView source ↗

(1) (a) What is the million-dollar impact of the retrospective legislation resulting from the Dutch decision and the million-dollar impact on the retrospective legislation resulting from the Dossett decision; and (b) has the impact of both decisions been costed in the $130 million claimed benefit? (2) (a) What percentage reduction or increase in numbers of new common law claims is expected following the introduction of the new workers’ compensation legislation; and (b) what is the million-dollar impact of this, and has it been costed in the $130 million initial claimed benefit and the $60 million ongoing claimed benefits? (3) (a) How many long-term injured works will be removed from the system in the first and second years by the increase in statutory benefits without a corresponding increase in the statutory cap - that is, how many will get the flick to federal handouts because they have hit the limit; and (b) what is the million-dollar impact of this and has it been costed in the $130 million and $60 million claimed benefits? (4) Has the 2002 labour relations reform legislation been taken into account when costing the claim of benefits; and, if so, what is the million-dollar impact of this? Hon NICK GRIFFITHS

AnswerView source ↗

I thank the member for some notice of this question. The Minister for Consumer and Employment Protection provides the following response. The answer is somewhat long, so I seek leave to incorporate it in Hansard . Leave granted. The following material was incorporated - 1. a) Based on current actuarial estimates the cost of the legislative provisions addressing the Dutch decision would fall within a range of between $20.3 million and $59.5 million. There is legislative provision for the cost to be paid from WorkCover WA’s Employers’ Indemnity Supplementation Fund. This will only occur if any amount of damages awarded is greater than the estimated cost provided by insurers and self insurers, as recorded by WorkCover. The cost to the Supplementation Fund is likely to be minimal. With respect to the Dossett decision it is not possible to estimate accurately the cost increase or reduction in legislating to clarify the intention of the Workers’ Compensation and Rehabilitation Amendment Act 1999. b) The costings announced by the minister include an amount of $26.6 million which was the actuary’s initial estimate of the cost of the Dutch provisions. 2. a) In 2003-04 there were 799 claims for common law. It is not anticipated that there will be an increase in these numbers. Based on actuarial estimates the number of common law claims is expected to be approximately 576 per annum. b) An initial increase of $26.6 million with ongoing costs of $10.6 million per annum for the proposed changes to common law. 3. a) None. There is no legislative link between the improved statutory benefits and workers exiting the system. b) Not applicable. 4. No. It is not clear what provision of the Labour Relations Reform Act 2002 the member is referring to. There is no obvious link between the reform provisions of that Act and the cost of the workers’ compensation reform package.
Hon NICK GRIFFITHS replied: I thank the member for some notice of this question. The Minister for Consumer and Employment Protection provides the following response. The answer is somewhat long, so I seek leave to incorporate it in Hansard . Leave granted. The following material was incorporated - 1. a) Based on current actuarial estimates the cost of the legislative provisions addressing the Dutch decision would fall within a range of between $20.3 million and $59.5 million. There is legislative provision for the cost to be paid from WorkCover WA’s Employers’ Indemnity Supplementation Fund. This will only occur if any amount of damages awarded is greater than the estimated cost provided by insurers and self insurers, as recorded by WorkCover. The cost to the Supplementation Fund is likely to be minimal. With respect to the Dossett decision it is not possible to estimate accurately the cost increase or reduction in legislating to clarify the intention of the Workers’ Compensation and Rehabilitation Amendment Act 1999. b) The costings announced by the minister include an amount of $26.6 million which was the actuary’s initial estimate of the cost of the Dutch provisions. 2. a) In 2003-04 there were 799 claims for common law. It is not anticipated that there will be an increase in these numbers. Based on actuarial estimates the number of common law claims is expected to be approximately 576 per annum. b) An initial increase of $26.6 million with ongoing costs of $10.6 million per annum for the proposed changes to common law. 3. a) None. There is no legislative link between the improved statutory benefits and workers exiting the system. b) Not applicable. 4. No. It is not clear what provision of the Labour Relations Reform Act 2002 the member is referring to. There is no obvious link between the reform provisions of that Act and the cost of the workers’ compensation reform package.
I thank the member for some notice of this question. The Minister for Consumer and Employment Protection provides the following response. The answer is somewhat long, so I seek leave to incorporate it in Hansard . Leave granted. The following material was incorporated - 1. a) Based on current actuarial estimates the cost of the legislative provisions addressing the Dutch decision would fall within a range of between $20.3 million and $59.5 million. There is legislative provision for the cost to be paid from WorkCover WA’s Employers’ Indemnity Supplementation Fund. This will only occur if any amount of damages awarded is greater than the estimated cost provided by insurers and self insurers, as recorded by WorkCover. The cost to the Supplementation Fund is likely to be minimal. With respect to the Dossett decision it is not possible to estimate accurately the cost increase or reduction in legislating to clarify the intention of the Workers’ Compensation and Rehabilitation Amendment Act 1999. b) The costings announced by the minister include an amount of $26.6 million which was the actuary’s initial estimate of the cost of the Dutch provisions. 2. a) In 2003-04 there were 799 claims for common law. It is not anticipated that there will be an increase in these numbers. Based on actuarial estimates the number of common law claims is expected to be approximately 576 per annum. b) An initial increase of $26.6 million with ongoing costs of $10.6 million per annum for the proposed changes to common law. 3. a) None. There is no legislative link between the improved statutory benefits and workers exiting the system. b) Not applicable. 4. No. It is not clear what provision of the Labour Relations Reform Act 2002 the member is referring to. There is no obvious link between the reform provisions of that Act and the cost of the workers’ compensation reform package.
Leave granted. The following material was incorporated - 1. a) Based on current actuarial estimates the cost of the legislative provisions addressing the Dutch decision would fall within a range of between $20.3 million and $59.5 million. There is legislative provision for the cost to be paid from WorkCover WA’s Employers’ Indemnity Supplementation Fund. This will only occur if any amount of damages awarded is greater than the estimated cost provided by insurers and self insurers, as recorded by WorkCover. The cost to the Supplementation Fund is likely to be minimal. With respect to the Dossett decision it is not possible to estimate accurately the cost increase or reduction in legislating to clarify the intention of the Workers’ Compensation and Rehabilitation Amendment Act 1999. b) The costings announced by the minister include an amount of $26.6 million which was the actuary’s initial estimate of the cost of the Dutch provisions. 2. a) In 2003-04 there were 799 claims for common law. It is not anticipated that there will be an increase in these numbers. Based on actuarial estimates the number of common law claims is expected to be approximately 576 per annum. b) An initial increase of $26.6 million with ongoing costs of $10.6 million per annum for the proposed changes to common law. 3. a) None. There is no legislative link between the improved statutory benefits and workers exiting the system. b) Not applicable. 4. No. It is not clear what provision of the Labour Relations Reform Act 2002 the member is referring to. There is no obvious link between the reform provisions of that Act and the cost of the workers’ compensation reform package.
The following material was incorporated - 1. a) Based on current actuarial estimates the cost of the legislative provisions addressing the Dutch decision would fall within a range of between $20.3 million and $59.5 million. There is legislative provision for the cost to be paid from WorkCover WA’s Employers’ Indemnity Supplementation Fund. This will only occur if any amount of damages awarded is greater than the estimated cost provided by insurers and self insurers, as recorded by WorkCover. The cost to the Supplementation Fund is likely to be minimal. With respect to the Dossett decision it is not possible to estimate accurately the cost increase or reduction in legislating to clarify the intention of the Workers’ Compensation and Rehabilitation Amendment Act 1999. b) The costings announced by the minister include an amount of $26.6 million which was the actuary’s initial estimate of the cost of the Dutch provisions. 2. a) In 2003-04 there were 799 claims for common law. It is not anticipated that there will be an increase in these numbers. Based on actuarial estimates the number of common law claims is expected to be approximately 576 per annum. b) An initial increase of $26.6 million with ongoing costs of $10.6 million per annum for the proposed changes to common law. 3. a) None. There is no legislative link between the improved statutory benefits and workers exiting the system. b) Not applicable. 4. No. It is not clear what provision of the Labour Relations Reform Act 2002 the member is referring to. There is no obvious link between the reform provisions of that Act and the cost of the workers’ compensation reform package.
1. a) Based on current actuarial estimates the cost of the legislative provisions addressing the Dutch decision would fall within a range of between $20.3 million and $59.5 million. There is legislative provision for the cost to be paid from WorkCover WA’s Employers’ Indemnity Supplementation Fund. This will only occur if any amount of damages awarded is greater than the estimated cost provided by insurers and self insurers, as recorded by WorkCover. The cost to the Supplementation Fund is likely to be minimal. With respect to the Dossett decision it is not possible to estimate accurately the cost increase or reduction in legislating to clarify the intention of the Workers’ Compensation and Rehabilitation Amendment Act 1999. b) The costings announced by the minister include an amount of $26.6 million which was the actuary’s initial estimate of the cost of the Dutch provisions. 2. a) In 2003-04 there were 799 claims for common law. It is not anticipated that there will be an increase in these numbers. Based on actuarial estimates the number of common law claims is expected to be approximately 576 per annum. b) An initial increase of $26.6 million with ongoing costs of $10.6 million per annum for the proposed changes to common law. 3. a) None. There is no legislative link between the improved statutory benefits and workers exiting the system. b) Not applicable. 4. No. It is not clear what provision of the Labour Relations Reform Act 2002 the member is referring to. There is no obvious link between the reform provisions of that Act and the cost of the workers’ compensation reform package.
b) An initial increase of $26.6 million with ongoing costs of $10.6 million per annum for the proposed changes to common law. 3. a) None. There is no legislative link between the improved statutory benefits and workers exiting the system. b) Not applicable. 4. No. It is not clear what provision of the Labour Relations Reform Act 2002 the member is referring to. There is no obvious link between the reform provisions of that Act and the cost of the workers’ compensation reform package.
3. a) None. There is no legislative link between the improved statutory benefits and workers exiting the system. b) Not applicable. 4. No. It is not clear what provision of the Labour Relations Reform Act 2002 the member is referring to. There is no obvious link between the reform provisions of that Act and the cost of the workers’ compensation reform package.
b) Not applicable. 4. No. It is not clear what provision of the Labour Relations Reform Act 2002 the member is referring to. There is no obvious link between the reform provisions of that Act and the cost of the workers’ compensation reform package.
4. No. It is not clear what provision of the Labour Relations Reform Act 2002 the member is referring to. There is no obvious link between the reform provisions of that Act and the cost of the workers’ compensation reform package.

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